Nearly two-thirds (64.0%) of home offers written by Redfin agents in March faced competition, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That’s up from a revised rate of 62.1% in February and marks the 11th-consecutive month in which more than half of Redfin offers encountered bidding wars, as well as the second month in a row in which the bidding-war rate exceeded 60%.
Homebuyers have endured ruthless bidding wars during the coronavirus pandemic as low mortgage rates and remote work have compelled scores of Americans to relocate and buy homes. This has exacerbated an existing shortage of homes for sale, with buyers far outnumbering sellers. Bidding wars are so intense that a record 46% of homes are selling within one week of hitting the market, up from 30% a year ago.
Competition has ticked even higher in the last couple of weeks as Americans look ahead to a return to normalcy and back-to-school season, according to Las Vegas Redfin real estate agent Lori Garlick.
“In today’s market, buyers need to pull out every single stop they possibly can. Competition is escalating in part because it’s almost summer and families want to lock down homes before the next school year starts and their kids have to head back to the classroom,” Garlick said. “This typical spring homebuying behavior is making a hot housing market even hotter.”
Single-Family Homes Are the Most Competitive, But Townhomes Aren’t Far Behind
Single-family homes had a bidding-war rate of 66.5% in March, making them the property type most likely to encounter competition. Townhomes weren’t far behind, with a bidding-war rate of 65.6%. While condos were less competitive, more than half (51.1%) of Redfin offers still faced competition.
Single-family homes have attracted relatively fierce competition during the pandemic because homebuyers have been seeking out space and privacy, but townhomes may be starting to catch up. In March, the bidding-war rate for townhomes trailed that of single-family homes by less than a percentage point, compared with a 5.2-percentage-point gap in February.
“Townhouses—especially ones with outdoor space—are starting to see more competition because it has become so difficult for buyers to win single-family homes,” said Redfin Seattle real estate agent Heather Stovall. “My clients recently accepted an $890,000 offer on their Fremont townhouse after listing it at $795,000. The property, which has a really nice deck, a built-in outdoor kitchen and views of Mount Rainier, received a total of eight bids.”
Salt Lake City, Pittsburgh and Las Vegas Were Among the Most Competitive Markets
Salt Lake City had the highest March bidding-war rate of the 42 U.S. metropolitan areas in Redfin’s analysis, with 87.1% of offers written by Redfin agents facing competition. Next came Pittsburgh at 82.0% and Boise, ID at 81.5%. Virginia Beach, VA and Las Vegas rounded out the top five, at 80.9% and 78.1%, respectively.
Luxury Homes Are Most Likely to Draw Bidding Wars
Homes listed between $800,000 and $1 million were the most likely to attract bidding wars, with 69.4% of Redfin offers facing competition in March. Next came homes listed between $1 million and $1.5 million, with 68.6% of offers seeing bidding wars.
Homes listed for less than $200,000 were the least likely to see competition, but still had a bidding-war rate of 59.1%.
To read the full report, including charts with metro-level data, please visit: https://www.redfin.com/news/real-estate-bidding-wars-march-2021
Redfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country’s #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we’ve saved customers nearly $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email email@example.com.